Thinking of switching business energy?
Searching for a business energy supplier is about much more than simply finding the best price for gas and electricity.
Customer service, energy provenance, terms and conditions, and many other factors play a part in determining which provider is right for you.
This article aims to answer, as comprehensively as possible, every question you may be facing with regard to making your choice.
It is updated regularly so that the information on business energy prices is accurate and credible.
Compare Business Energy Deals and Prices
Looking to compare the best business energy suppliers?
We’ve partnered with Love Energy, so that you can compare the best gas and electricity deals based on accurate, live data and save money instantly.
Simply fill in our simple form and get impartial information to help you make your decision. You’ll save money on your business energy bills instantly.
Business Energy Quotes
Businesses tend to be less price-conscious than the domestic energy market, sticking with the same supplier year in and year out without realising how much they could save.
It’s worth understanding how commercial energy tariffs are established. When you apply, these are the factors which will be considered:
- Your business credit rating
- Business size
- Postcode
- Your Business type (whether you’re a sole trader or a limited company, for example)
- Which business sector you operate in
- Energy consumption
Types of Business Energy Contracts
The commercial energy sector offers three key types of contacts.
They are as follows:
| Tariff Type | Key Features |
|---|---|
| Fixed-rate | Set unit price and standing charge. Locked for 1-5 years. Stable budgeting, protection from price hikes. |
| Variable rate | Rates fluctuate with market prices. Potential savings, but risk of increases. Often offered by Scottish Power. |
| Rollover | Automatic renewal if no new contract. Usually 1-year term, legally binding. Typically higher rates. |
| Green | Sourced from renewable energy. Growing availability across suppliers. Popular with environmentally conscious businesses. |
| Pass-through | Separates wholesale rates from other costs. Suited for active electricity buyers. Costs can vary throughout the year. |
| Deemed rate | Applied when no contract is in place. Most expensive rates on the market. Temporary solution until a contract is agreed. |
| Flexible | For large consumers. Allows advance purchase at wholesale rates. Bypasses some retailer costs. |
Who is the Cheapest Business Energy Supplier?
There is no simple answer to this question since the commercial energy market is intensely competitive and prices are subject to continual fluctuation.
If there’s one point we’d like you to take from this article is that the cheapest tariff may not be the best. The best energy deals are not merely about the lowest price, so bear this in mind when you compare prices.
Different gas and electricity suppliers will offer longer contracts, fixed or flexible terms, broader payment options, or customer service, which could make all the difference if you need to speak with someone promptly.
| Supplier | Unit rate (kWh) | Standing charge (daily) |
|---|---|---|
| British Gas | 25.2p | 72.0p |
| BG Lite | 25.4p | 55.8p |
| EDF Energy | 26.8p | 59.4p |
| EON Next | 27.8p | 40.8p |
| ScottishPower | 25.6p | 70.0p |
| Valda Energy | 25.4p | 58.5p |
| Yu Energy | 26.7p | 50.8p |
Which is the Best Electricity Supplier for a Small Business?
With Brexit plus the Coronavirus to contend with, small businesses have never had it tougher.
Taking time to find the best business energy prices is, therefore, an essential way to make sure you’re not spending more than you need to.
As such, you’re going to need an energy provider that offers competitive energy tariffs, decent customer service, and reliable service.
A middle ground of these factors, combined with flexible contracts, means a handful of providers stand out as the obvious choices.
In addition, green energy credentials rank as a choice more and more businesses consider deeply important as the global climate crisis deepens.
All of these firms are authorised and regulated by the Financial Conduct Authority, so they’re totally safe to use.
(1) Love Energy Savings Since Love Energy is our chosen partner for the comparison of business energy quotes, it’s no wonder we should list them first. But for good reason.
Unlike the others on here, they’re not actually in the business of creating energy themselves. Rather, their comparison software allows for easy comparison of which providers might be right for you.
We like them because they:
- Are Always transparent
- Are Extremely convenient
- Put Customer Service First
- Make it very easy for you to switch business energy
(2) Octopus Energy
With competitive prices, no exit fees, and sensibly termed contracts, Octopus Energy is a provider we love. Best of all, they offer 100% renewable electricity and carbon offset gas as standard to all customers.
They’re a tech-savvy energy company, so their website and app are slick and highly intuitive. Monitor your energy usage moment to moment from your phone. Type your meter reading straight into your phone to receive accurate monthly bills.
Their customer service is excellent too and a huge focus of the company. You will find yourself speaking to an actual human fairly rapidly if you try to call them, which is more than can be said for many of their competitors.
Now one of the UK’s leading green energy suppliers, their power is sourced from renewable sources like solar, wind, and hydro. They also make it extremely simple for you to switch business energy to them.
(3) Utility Warehouse Another of the new breed of energy providers, Utility Warehouse comes with a simple USP; they can take care of all your utilities via one easy bill.
So that means energy with broadband, phones and even insurance thrown in too.
They also guarantee to beat the rates of the Big Six Energy providers, meaning their rates are competitive.
Their business model offers more savings to those who become ‘Gold Members’ which means further discounts plus a £200 contribution towards any termination fees your existing provider might impose.
Which is the Best Energy Comparison Site for Businesses?
Where is the best place to get a cheap business gas or electricity deal?
All of the business energy comparison websites, including Business Expert, make money via referring business to the energy suppliers and receiving a small commission.
We have worked hard to make Business Expert is the best comparison website via the following methods:
- Complete transparency
- Continually updated information
- Focus on user experience
- Including as many suppliers as possible
- Independent and Unbiased
- Our mission is to make comparing and changing energy suppliers as simple and secure as possible
What is a Good Rate for Business Electricity?
A typical electricity price for a business in 2024 ranges from 24.7p to 25.9p per kWh, depending on the annual consumption and business size.
| Business Size | Annual Usage (kWh) | Average Unit Price (p/kWh) |
|---|---|---|
| Micro | Up to 5,000 | 24.7 |
| Small | 5,000 – 15,000 | 25.2 |
| Medium | 15,000 – 25,000 | 25.2 |
| Large | 25,000 – 50,000 | 25.9 |
Higher consumption will obviously mean lower rates. Green tariffs often mean a higher price in addition.
Standing Charge
In addition to the cost per KWh, it is also important to factor in the ‘standing charge’ which is an amount charged per day which covers the costs of getting the electricity or gas to you.
Typical electricity standing charges vary even more widely than the price per KWh, falling between 27p per day and 1.59 according to our latest analysis.
Who is the Best Business Energy Supplier?
The ‘best’ business energy supplier is the one that meets your particular needs most appropriately.
Our criteria for this includes:
- Customer Service – how quick are they to respond to telephone enquiries or support emails
- Price – Are they price competitive?
- Transparency – Are there hidden charges? Is information clearly available on their website about everything from business practices to supply chain?
- Green Credentials – As climate changes worsens, we value energy providers who offer sustainable power options beyond fossil fuels, as well as running their business sustainably
- How easy do they make it to switch business energy from your current supplier?
Top Renewable Energy Deals for Business
Green Energy is the fastest growing area of the sector with multiple players now vying for the renewable energy market in the UK.
All of the big suppliers now offer their own Green Tariff, while smaller specialist providers cater to those who want the ultimate level of ecological credentials. when it comes to their energy consumption.
In fact, for Millenials and Gen Z’ers in particular, sustainability is one of the key metrics by which they choose suppliers.
Here are the key UK Green Energy Suppliers at the moment:
- Dong Energy
- Ecotricity
- Engie (GDF Suez)
- F & S Energy
- Good Energy
- Green Energy UK
- LoCO2 Energy
- Octopus Energy
- Smartest Energy
- Total Gas & Power
- Vayu Energy
Why is Business Energy So Expensive?
Businesss energy is more expensive, especially for smaller companies, than domestic.
Climate Change Levy
In addition to VAT at 20%, business energy is subject to the Climate Change Levy (CCL) which is 0.188p per kWh for gas and 0.541p per kWh for electricity.
The Climate Change Levy does not affect the standard charges but only the units/ kWh used.
The Levy is partly intended as a strong incentive for businesses to make themselves more energy efficient.
Compare Business Energy Prices, Plans, Tariffs and Suppliers
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